IL&FS Transportation's Rs 740-cr rights issue to open on Oct15

The Rs 740 crore rights issue of IL&FS Transportation Networks will open on October 15 and the proceeds will be utilised mainly for repaying loans.
The company will issue over 8.22 crore equity shares of face value of Rs 10 each for cash at Rs 90 per share for an aggregate amount of up to Rs 740.16 crore to the existing investors.
The issue will close on October 29, as per the offer document filed by the company with markets regulator Sebi.
In a rights issue, shares are issued to existing investors as per their holding at a pre-determined price and ratio.

The Mumbai-based firm, which is one of the largest private sector operators of BOT (Build Operate Transfer) roads, plans to use the proceeds of the issue towards "repayment /pre-payment of certain loans availed by it and other general corporate purposes.
"We believe that reducing our indebtedness will result in an enhanced equity base, assist us in maintaining a favourable debt-equity ratio in the near future and enable utilisation of our accruals for further investment in business growth and expansion," said the offer document.
"In addition, we believe that the leverage capacity of our company will improve to raise further resources in the future to fund our potential business development opportunities and plans to grow and expand our business in the coming years," the company added.

The issue is being managed by JM Financial Institutional Securities Ltd.